Changes in VA Partial Claim Program

Changes in Cenlar’s Approach to the Veterans Affairs Partial Claim Program

As we shared in an advisory last month, Cenlar has been following the VA process and guidelines for Partial Claim filing and reimbursement. The VA initially advised that servicers should not advance funds until the VA has certified the claim. This certification process takes place after the servicer has received the signed documents from the homeowner.

Unfortunately, the VA’s certification process has been delayed. This delay has impeded Cenlar’s ability to follow the loss mitigation process and, thereby, has implications for the homeowner.

Specifically, Cenlar has been unable to apply payments received from the homeowner or complete system changes to bring loans current. This has resulted in delays in applying the homeowner’s payments and providing accurate statements and credit reporting. Moving forward, Cenlar will advance the claim funds using the client’s GL until the claim is verified by the VA.

Should you have homeowners with VA loans that have applied for the Partial Claim program, your June invoice and those thereafter will reflect this advance until the VA certifies the backlog of loans. This activity will be on your monthly bill in third-party corporate advances. When the VA is able to catch up, Cenlar will credit your account accordingly.

If you have any questions or concerns about the action we are taking on VA Partial Claim loans in response to VA’s backlog, please reach out to your client manager.